South Korean brokerages report 113 IT failures, 7.3292 billion won in customer damages

  • Ten South Korean brokerages recorded 113 IT failures affecting 19,055 customers from 2024 through August.
  • Program errors caused 58 incidents, representing 51.3% of reported failures.
  • Kiwoom Securities paid 3.8022 billion won after 13 IT failures over the period.

South Korea’s 10 comprehensive financial investment business entities with capital of at least 3 trillion won recorded 113 IT system failures from 2024 through August, affecting 19,055 customers and causing 7.3292 billion won in damages. The firms paid 6.9894 billion won in compensation. Program errors caused 58 incidents, or 51.3% of the total. Kiwoom Securities paid the most over the period, while Korea Investment & Securities recorded the largest compensation bill this year. The figures have renewed calls for stronger IT infrastructure, preventive checks and investor-protection measures as brokerages rely on electronic trading systems.

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